Elon Musk’s Chinese rival in the satellite internet market plans to start operations in Brazil in 2026, according to Jason Jie Zheng, director of SpaceSail, a company based in Shanghai, in an interview with Bloomberg News this Tuesday (19).
Jie Zheng signed a memorandum of understanding with Telebras to study demand for satellite internet in areas where fiber optic infrastructure is not viable.
The agreement was signed during President Xi Jinping’s visit to Brazil, where he participated in the G20 summit in Rio de Janeiro. This Wednesday (20), Xi is expected to sign a series of agreements with President Luiz Inácio Lula da Silva in Brasília.
Lula seeks a partnership in China to boost Brazil’s economic development, but this approach could generate friction with Donald Trump, president-elect of the United States, who promises to adopt a tougher stance towards China and its expansion in the Americas.
Chinese investments in Brazil are leaving paper and becoming reality. Examples include BYD’s largest operation outside Asia in the electric vehicle sector and a local partnership with Chinese smartphone maker Oppo.
In a brief interview after Tuesday night’s event, Jie Zheng stated that SpaceSail will begin offering internet in Brazil within two years and will open a subsidiary in the country by the end of this year.
“Our memorandum with Telebras is not just a partnership, but also a shared commitment to empowering the underserved regions of Brazil,” said Zheng in a speech.
“By combining Telebras’ expertise with SpaceSail’s advanced solutions, we seek to support Brazil’s national initiative with our broadband services and digital industrial solutions, expanding access to essential services such as education, public health and government.”
Jie Zheng, Director of SpaceSail
SpaceSail launched its first batch of 18 satellites into orbit in Augustfollowed by a second release with 18 others last month. There are still more than 600 satellites left to complete the first phase of the planned constellation, expected to be operational by the end of next year.
READ MORE: China responds to Elon Musk and launches rival Starlink satellites
This week’s event took place after a visit by Brazilian government representatives to SpaceSail’s headquarters in October, shortly after a months-long clash between Elon Musk and the Federal Supreme Court, which resulted in millionaire fines and the blocking of the social network X in Brazil.
At the height of the dispute, Starlink’s bank accounts in Brazil were frozen to force X to comply with court orders. Musk ended up giving in, the accounts were unlocked and access to the social network was reestablished in the country.
Starlink is the leader in the satellite internet market, with a 46% share in Brazil. However, in the total broadband market, Musk’s company holds just 0.5%, with 265 thousand customers as of September.
The Minister of Communications, Juscelino Filho, denied any retaliatory relationship between Brazil’s conflict with Musk and the rapprochement with Chinese competitors.
“Brazil is always with open arms to anyone who can offer quality services with fair prices and security for the Brazilian population,” the minister told reporters. “Nothing is good in any industry when there is only one supplier.”
